I have a joint account and the other person on the account has a bank credit card and stopped paying on it. Can the bank take money out of the joint account?
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Federal law does not permit a bank to simply take funds from a deposit account, using set-off rights, to satisfy balances owed on a credit card account. However, if the bank took a security interest in the deposit account or if the bank takes legal action to attach the funds in the account, it would then be permitted for the bank to take the funds. In general, the funds in a joint account can be reached by creditors of any of the owners. The prohibition against setting off against credit card debt is a specific rule that does not apply to other forms of debt.
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Federal law does not permit a bank to simply take funds from a 